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Generation Alpha, or anybody born after 2010, is getting increasingly compared to Gen Z as the oldest Alpha cohorts enter their tween years and start expressing their personalities on social media and elsewhere.
A New York Post article chronicled how some Gen Zers feel old because they can’t comprehend Gen Alpha’s humor on social media. A Business Insider article notes how millennial and Gen X parents are playfully calling their Gen Alpha kids “honey badgers” on social media because of “how brave and authority-defying the generation seems to be.”
A study from marketing agency Razorfish, based on interviews with Alphas (ages 8 to 10) and Gen Zers (ages 16 to 23), identified differences between the generations:
- Earlier tech adapters: Just 31% of Gen Z values having the latest tech devices and capabilities, compared to 63% of Alphas.
- Gaming as a creative outlet: Alphas were found to be twice as likely to see gaming as a form of self-expression than Gen Zers, who cite relaxation as their top reason for gaming.
- YouTube discovery over TV: Over half (51%) first learned about brands through YouTube videos.
“From unboxing videos to watching YouTubers play video games, Alphas seek and enjoy self-directed control over their content,” Dani Mariano, Razorfish’s president, told Insider Intelligence.
A study from Harvard Business Review (HBR) explored how being the first generation to grow up with artificial intelligence and augmented reality will shape how Gen Alpha learns, works, socializes, and shops.
The study highlighted Walmart’s “The Hidden World of Waffles + Mochi,” a gaming experience teaching kids about healthy eating, and “Walmart Land,” the retailer’s Roblox destination.
Justin Breton, Walmart’s director of brand experiences and partnerships, told HBR, “The way that [Alphas] are going to socialize is going to transcend the physical and move into the virtual in ways that we are seeing today, but also at a grander scale in the future.”
Razorfish’s survey found that similar to Gen Z, Alphas are prioritizing disconnecting for mental health reasons. They also likewise value purpose, accountability, and authenticity, albeit to a greater extent than Gen Z. Razorfish’s advice to businesses included, “Don’t think of Alphas as younger Gen Zs. They’re already more Gen Z than Gen Z, at a younger age.”
BrainTrust
Georganne Bender
Principal, KIZER & BENDER Speaking
Brian Cluster
Director of Industry Strategy - CPG & Retail, Stibo Systems
Melissa Minkow
Director, Retail Strategy, CI&T
Discussion Questions
How will Gen Alpha likely differ from Gen Z as consumers? How might Gen Alpha’s expectations differ around experiences and engagement from retailers?
Poll
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All cohorts are generalizations. However, generalizations can be a useful shorthand for understanding consumer trends. From our research, Gen Alpha is much more creative and is used to building their own worlds and realities in games like Roblox. This means they have a greater desire to personalize products. They also use such platforms for socializing and interacting, so they’re more likely to learn about brands and products through these channels. Over time, this may help to drive technologies like augmented reality. That said, Gen Alpha is not all about technology – there is a great affinity for offline activities, especially those focused round wellbeing and sustaining mental health.
Gen A is the first generation to be born into a global concern for climate and the longevity of the planet. This overarching fear will make most things seem insignificant. Escapism from reality and into virtual worlds will be easy for them. They will most likely be less motivated by acquiring things and seek augmented experiences. Gen Z is now in the workforce, they are living with the reality of taxes, politics and adulting, so their once very altruistic view is making room for paying their own way. Retailers will not only have to stand for something go forward, they will actually have to make a difference to stay relevant.
In observing the evolving dynamics between Generation Alpha and Gen Z, it’s evident that Gen Alpha is carving out a distinct identity, especially in their consumer behavior. Their pronounced inclination towards the latest technology, coupled with a unique blend of gaming as self-expression, underscores a shift in engagement preferences. Furthermore, their brand discovery predominantly through platforms like YouTube signals a pivotal change in marketing strategies. As they seamlessly merge the virtual and physical realms, retailers are presented with opportunities to innovate, as seen with Walmart’s ventures into augmented reality and gaming. Yet, at their core, Gen Alpha echoes the values of purpose and authenticity, albeit with heightened emphasis. It’s imperative for businesses to recognize that while Gen Alpha shares some traits with Gen Z, they are forging a path that’s uniquely their own, demanding a fresh approach from retailers and brands alike.
Razorfish’s survey found that, similar to Gen Z, Alphas are prioritizing disconnecting for mental health reasons. They also likewise value purpose, accountability, and authenticity, albeit to a greater extent than Gen Z. Razorfish’s advice to businesses included, “Don’t think of Alphas as younger Gen Zs. They’re already more Gen Z than Gen Z, at a younger age.” If this is true, the world is in for a better future.
But let’s not go too far with projections. As I have watched my GenZ grandchildren change and mature over a decade, that forecast from ten years ago would be off.
What we can say about these youngsters is that as they grow into adults, they will be more adaptable to new ideas and innovation. By the time they are in their twenties, they will have seen technology transition faster than any other generation has seen in a lifetime.
I said this when the Millenials were coming up and I guess I have to say it again. Whatever behaviors re established now will likely change as the cohort ages. Remember “tiny houses?” Can’t really have kids in those. So surprise! Home buying became a thing.
kids do what kids do, and as the times change, those things may change some….but as they grow up, they start to fall into more predictable patterns.
I just hope the planetary habitat remains friendly for them
Yes- tiny houses… There were umpteen shows and a lot of startup builders and now crickets. I believe the economy and the environment will drive the changes in the Alpha kids. They will be able to do more with less. They also have less patience – get to it without the fluff.
As speakers, generational diversity used to be a hot topic for Rich and I. Now, not so much. It’s fun to talk about what we imagine each generation to be, what motivates them, shaping who they become, but at the end of the day, we are more alike than we are different.
My Alpha grandkids are being raised by Millennial parents. Sure, they have had the benefit of being surrounded by technology from the second they were born, but the rest of us have become adept at catching up. They may love playing on a iPad, but they also love going to the park.
In my daily observations I see children who act and react the same way my Millennial kids did to the things life throws at them. Really, the only thing that truly separates the generations is technology and how we use it. The humanness of who we are and who we become is still there.
Today my Gen Alpha resented having to sit through a 15-second ad. Reaching this elusive cohort will inspire brands to embed their products into content.
Gen Alpha lives on YouTube, TikTok and video games. They trust raw, real and imperfect influencers more than extravagant, polished ads. The velocity of viral trends (like Prime energy drinks) forces supply chains to mobilize fast for reach and availability.
How good is your GenAlpha at responding to surveys?
Did they compare the results of Gen Alphas at this current age to Gen Zers at that same age? It sounds like they compared the generations at their current ages right now, which would certainly explain some of the key differences. We’d have to compare them at the same ages to truly understand if they’re more different or similar. While Gen A is growing up with some differences at play from the previous generation, I actually think these two generations will shake out to be quite similar in attitudes and behaviors than other pairings of back-to-back gens.
While I see the value of gaining an early insight into the next generation of shoppers, I remain respectfully skeptical of some of the findings. It is certainly meaningful and valid to understand generational habits and hobbies. I’m not sure if you can compare future purchase behavior with individuals who have had part-time or full-time jobs to those who have relied solely on parents for purchases.
Being a father to both Generation Alphas and Gen Z I have some context. The perfect example that ties to the research is tech adoption and the purchase of a new iPhone. The Gen Alpha would definitely want one and be an early tech adapter because perhaps they don’t know that it may take 80 hours of work to purchase an iPhone if their parents would buy it for them. However, Gen Z knows this truth and would rather have a combination of experiences and tech than work two weeks straight to have the latest phone. Gen A ( ages 10-12) does not really typically understand the work/value relationship or essentially the value of money yet.
That said, Gen A will be more tech-driven, and more comfortable with Augmented Reality, use AI, and also be more conscious of environmental and social issues than previous generations which have ramifications for retail.
If Gen Z is going to break the mold, then Gen Alpha is going to rebuild it. These are both digitally-forward cohorts with similar values and characteristics between them. While Gen Alpha is still taking shape, this cohort has the potential to redefine retail and the roles between brick/mortar and digital commerce. They are the defining future of retail and its not too early to start paying attention.
Both Gen Z and Alpha generations value instant gratification. They expect immediate results when making decisions and quickly lose interest if retailers fail to offer timely solutions.
Having said that, it is evident that smartphones are a crucial part of life for these generations. Their smartphone serves as their primary lens for viewing the world, from online video games to shopping. Gen Alpha, in particular, has access to all of the modern era’s tools, particularly social media, which plays a significant role in shaping their behavioral patterns.
These customers are easily influenced by celebrities or trending influencers, making them the perfect target for retailers. To attract Gen A customers, retailers should collaborate with influencers who resonate with their young audience. Moreover, they need to enhance their presence on social networking platforms, where this generation is most engaged.